I hope you understand that the bond on your home is not the bond(s) involved in the IRS dispute.

I agree - in my opinion there is a moral obligation on the part of the developer to keep us whole, but unfortunately no legal obligation.

No, I didnt.
 

If you don't mind, when you have a chance and not too time consuming, I would love to know the details, which is for what.

Thanks

There is a contractual obligation on the part of the Developer to continue to provide the amenities in exchange for payment of the amenity fees.
Take a look at your deed restrictions. Understanding that is basic to understanding how the whole amenities system works.

In this regard, remember that, although everybody refers to the Developer as "he", the Developer is really an "it"-- a corporation owned by the Morse family.

Go to search above and type in bond.
There are hundreds of thousands of words written about it. There are two bonds. The one a buyer pays when he buys a new home here that is for the cost of the roads and the lights and the underground plumbing and the whole infrastructure. This bond is NOT included in the price of a home like it is in other parts of the country. On most new homes it is about 24 thousand dollars extra.

The bond that there is so much discussion about is the other one that is an investigation by the IRS. The issue is whether it is o.k. to have municipal bonds that are tax free in a CDD, which this is. A very unusual municipal situation that is working far better than the other kinds if you ask me.

The developer is not being investigated for not paying his proper income tax or anything shady.

There are those who like the developer and are on the side of big business and there are those who don't like the developer and don't like big business. There are those who don't know the developer, that would be every single person who lives here I would guess. It boils down sadly to be too often a political opinion whether you think Gary Morse is a good guy or a spawn of the devil.

And that is just my opinion.

And then are those who appreciate what has been accomplished here and the work entailed in creating TV but think the Morses have feet of clay. They can be greedy. They can be high-handed. They have shown themselves to participate in some questionable practices at times. They also have freely contributed their own money to various things and charities in TV. They aren't devils. They aren't saints.

Personally, I don't want to meet Mark or Gary Morse. I doubt they are the type of people with whom I really want to associate. Like most TVers, I think Harold Schwartz walked on water.

Hi dillywho: I appreciate your thoughts and comments and your desire not to pre-judge. However if you read all of what the IRS questioned in its Notice of Proposed Issue you might not be so quick to speak. I am not saying what follows is true or untrue but what the IRS alleges

In an abridge version the IRS essentially is saying that the Developer because he and his control board voted on the sell of facilities using his appraisals accountants ,etc to determine market value and income streams and used the VCCDD which he controls as a conduit to finance the sell via tax exempt bonds. so the IRS ask if the issuer of the bonds, the VCCDD is qualified for tax exempt bonds.

since the Issuer of the bonds was not the Developer but the VCCDD it does not appear the Developer is exposed.

The attorney for the VCCDD is utilizing our amenities fees to defend a case which is the subject of questionable transaction created by..... the Developer. However the question remains is the Developer (Villages of Lake Sumter, Inc formerly Orange Blossom, Inc) a legal party to the issuance of the bonds or just a recipient?

If you study the Developers methods of finance etc he did not take any risks he shifted all of the financing to the residents and secured all the profits. he certainly should be hailed for his business acumen in this respect

Well said. Not everyone who is not a fan of the Morses is "jealous" of their money, disparaging of big business, or in disagreement with their politics. The issue is much more complex.

Simply, there are bonds issued for the infrastructure to build the homes. Power, sewer, water, etc. These are the bonds that we pay annually with our property taxes, or pay them off entirely.

The bonds in dispute were issued by the central districts, VCCDD and SLCDD, to finance the purchase of amenities (exec golf courses, rec centers, etc.) from the developer. These bonds are paid, in part, by our amenity fees. It is that revenue stream that is at risk if the IRS prevails. Since our amenity fee increases are capped by CPI essentially, if more money has to be diverted to cover interest and penalties, there is less to maintain the amenities.

This is the Cliff notes version. The POA website has a more complete picture of the situation and a timeline of events.

Thank all of you for clarifying!
 

OK, I think I got it now. As far as my vote goes, "He", The Developer, "Morse", whoever, was the inspiration and driving force that created one of the most unique and successful communities ever. What's more, the level of pure satisfaction from his customers is nothing short of astounding! He get's my vote for "DUDE" of the last 20 years. However, from what I gather, the question really isn't whether people like what he has done, clearly they do. It's whether his entities that created this (looking at new golf course homes as we type) did this within the scope of IRS law. Guess the IRS has already made up it's mind. Kinda like Barry Bonds, awesome baseball player, just he did it with the help of steroids. So, all this brings this to what is currently on my mind. Should I wait to plop down my $500K or so or jump in, the waters fine! ??? I would sure hate to jump in and the water just dried up. I wonder if the 270 or so new homes sitting in inventory is typical or are their others doing a little stutter step, wondering the same thing. Whaddaya think? I truly want to thank all of you for being so responsive for my education. I cant wait to get there,,,as soon as I get over my fear of no water in the pool.

Less than one months sales!
Come join us, maybe it will be settled before or after we go out in the box.
Why wait??

Thanks Bogie
 

Working hard so I can carry a 7. Heard all you guys are Sr. Tour material. A seven,,,lol,,I cant even dream of a 7. Buy thanks, hope to see all of you soon.

I guess it depends on how much of a gambler you are. We live here and love it, but are dismayed by this whole IRS deal, and as you've read, there is much uncertainty about how it will affect the residents should the final decision be against The Villages.

270 houses sitting in inventory is less than one month of sales at the current rate.

It was reported in the New York newspapers that the IRS ruled against the District.